A truck from Chennai to Jamshedpur carrying tyres made by Apollo Tyres reached in three and a half days as state border barriers began to be dismantled after the goods and services tax (GST) came into force on July 1. The same truck would have taken five days earlier.

Many producers and transport operators are reporting logistics efficiency gains after states abolished border checkposts in the wake of GST, which promises one nation, one tax, one market. As many as 22 have removed barriers and others will do so soon.

“The time has reduced by nearly 30% as there are no multiple check points and taxes,” said B Krishna Rao, category head at Parle Products. “The initial assessment from our logistics partner is that we are saving at least three days if not more in our supply chain.”

ET’s reporters fanned across the country to get a sense of how GST is playing out on the ground in terms of goods movement. But while there’s evidence of barriers going down, there is also enough indication that not all of officialdom seems to be on the same page.

Regional Transport Office (RTO) employees are said to be stopping trucks and seeking monthly payments for various charges while mobile squads are making surprise checks and seeking payoffs.

The inspector raj isn’t dead yet. Feedback Infra chairman Vinayak Chatterjee said the Centre must ask states to issue advisories directing various agencies not to misuse their authority.

But there has been significant improvement in just about a week’s time.

“We will see substantial improvement in efficiency of the logistics sector,” Chatterjee said. “The average truck speed is already up. More transparency will come with the E-Way bill,” referring to documentation needed for crossborder movement for goods worth over Rs 50,000.

Gagandeep Puri, an independent fleet owner of molasses tankers that operate in Uttarakhand, western Uttar Pradesh and Haryana said travel time is down. The tankers reach Odisha from Uttarakhand and Haryana in four days from five to six days.

Trucks would otherwise spend hours at state borders, waiting to pay taxes, delays that encouraged corruption.

Shipping minister Nitin Gadkari told ET last week that logistics costs should decline by at least 20%. According to a PhillipCapital study, logistics account for 14% of GDP in India compared with 8.5% for US. Those costs should come down as the ‘one nation, one market’ begins to take shape under GST.

Mumbai-based DTS Translogistics Carriers said there has been a big difference in the time taken in transit after a carrier enters the city due to the removal of nakas.

“Since 22 states have already dismantled border checkpoints, the time for the movement of the goods from point to point has come down significantly,” said Raghupati Singhania, vice-president, JK Organisation, which has interests in cement, tyres and paper. “Perhaps a better assessment can be made after a couple of months.”

GAINS YET TO FLOWManufacturers said the logistics industry will be able to better utilise its assets and that should yield better rates. But these benefits of lower transport costs are yet to flow to them.

“There will be savings in time and costs,” said a senior executive at a Delhi-based carmaker said. “But we have to wait and see if transporters reduce freight costs.”

Transporters want to see how business evolves. As many as 2.5 million trucks were off the roads, according to SP Singh, senior fellow at the Indian Foundation for Transport Research (IFTR).

“Bookings have dropped by more than half in the first week of GST. By this time we would have sent out 10 carriers, but up till now the count is just two-three,” said an executive of DTS Translogistics Carriers.

Aditya Agarwal of Kolkata-based Hari Om Freight Carriers said: “We are suffering from a loss of business as we deal with pharma and chemical manufacturers. They are not taking new orders and whatever old orders they had taken, they have postponed it by a period of 60 days as they do not have a GST number yet and are still trying to find a way around the transition into the new system under GST.”

Logistics companies want to see if gains persist as GST settles in. The initial decline in transport time could be simply because there is less traffic on the roads because of GST-related disruption.

“We track movement of truckers on 75 routes,” said Singh of IFTR. “The speed and the trips of a few fleet owners have doubled because half the trucks are off road, not entirely because the check posts have been removed.” It is possible that some of these gains may be trimmed as traffic picks up.

PROBLEMS REMAINHowever, mobile squads are making spot cargo inspections and RTO employees are on the prowl as usual.

Some transporters said vehicles are being stopped at state borders with RTO employees collecting various charges.

“All sales tax-related activity has been eliminated since the implementation of GST. But RTOs are still collecting arbitrary amount from trucks, which clearly has no purpose,” said Ritesh Singh of Durga Transport Co based in Kolkata.

Some officials are insisting on adherence to the rule that stipulates trucks should have two drivers.

“The entire purpose of GST is defeated, if you look at the number of trucks stranded at state borders,” said Sohan Singh Aitiana, president of the Eastern Region LPG Bulk Transporters Association. “It is also affecting the supply chain.” In Uttar Pradesh, Bihar, West Bengal, Chhattisgarh, Odisha and Madhya Pradesh, the practice of charging a ‘mechanical’ fee is rampant.

“This mechanical is out and out bribe, and is being collected in cash only. The receipts given to drivers are not stamped or signed, and even their colour changes every month... so how can we even call it legal?” said Aitiana. RTOs are said to be charging `1,300-3,500 per truck as such monthly fees.

As long as such barriers remain, delays will persist, said a member of LPG transport association in eastern India who did not want to be named.

Raghav Himatsingka of Truckola, a logistics aggregator, said he’s getting reports that kilometres travelled per day have gone up but RTO officials are still penalising drivers for reasons like improper footwear, clothing and other norm violations.

Within a city, transport is still fraught with restrictions and impediments. “There is still congestion on roads, there are no-entry zones like Connaught Place in Delhi, Lutyens Zone that trucks can’t enter,” said Vineet Kanaujia, vice-president, marketing, Safexpress. Trucks in Delhi, the biggest market for cars, can only operate after 9.30 pm.

“Even if the check posts are removed, the mobile checking squads are still there and these truckers are finding ways to strike deals with them to carry on their business as usual,” Singh said. Reported by Rajat Arora, Sharmistha Mukherjee, Vatsala Gaur, Sagar Malviya, Nishtha Saluja